For the first time in seven years, California’s budget deficit has disappeared. At least, that’s the projection in the annual budget proposal out today from Governor Jerry Brown. (updated 3:45 p.m.)

The governor is calling for an extra 2-point-7 billion dollars
in school funding, along with slight increases for the U-C and
C-S-U systems and state worker compensation. But for the most
part, programs still scarred from years of budget cuts aren't
slated to get more money. And Brown says that's how it should
be:

BROWN: "We're also not going to play the game of
spending money we don't have, and then after I'm gone, somebody
else comes along and has to face what I did - a $27 billion or a
$20 billion deficit."

Brown might say the deficit is zero, but not everyone
agrees. In November, the non-partisan Legislative Analyst's
Office projected a two billion dollar gap. And even Brown
acknowledges several risks to state finances - including the Fiscal
Cliff uncertainty in Washington.